Mitsubishi Motors to boost investments in electrification

Mitsubishi Motors Corporation said it will continue to work on electrification as a solution to the global issue of climate change and to help achieve carbon neutrality. 

The Japanese automaker said it will increase its investment in research and development and capital spending by 30% over the next six years to 2028, compared to the past six years. In addition, the share of electrification, information technology (IT) and new business is expected to reach around 70% from Fiscal Year 2026 onwards, the company said.

On March 10, Mitsubishi Motors announced its mid-term business plan and regional strategy  from Fiscal Year 2023 to 2025. The main initiatives of this plan are as follows:

• Aim for a sales volume in the 1.1 million vehicle and operating profit of JPY220 billion (USD1.6 billion) 
• Concentrate management resources in the Association of Southeast Asian Nations (ASEAN) and Oceania, and increase sales volume, market share, and revenue.
• In the next five years, roll out 16 models (including nine xEVs)
• Increase investment by around 30% over the six years to 2028 compared with the past six years in R&D expenses and CAPEX.  
• Reduce emissions of greenhouse gases in order to help achieve carbon neutrality
• Invest a total of JPY210 billion (USD1.5 billion) by 2030 to secure 15 gigawatts (GWh) of battery procurement
• Further bolster linking with Alliance (mutually complementary OEM products, etc.)
• Take on the challenge of new business using assets unique to an automobile manufacturer (energy management, battery reuse, data sales, etc.)

In July 2020, Mitsubishi Motors announced that it was freezing new car development for the European market. In March 2021, Mitsubishi announced that Groupe Renault will sell two “sister models” produced in Group Renault plants, based on the same platforms, but with differentiations, to reflect Mitsubishi’s DNA.